Ripple (XRP), Hit by Institutional Outflows and Retail Exodus, Successfully Achieves Technical Rebound, Will It Break the $1.20 Barrier?

XRP Price Prediction: Targeting $1.20 Breakthrough Amidst Spot ETF Outflows and Individual Investor Exodus

▲ Ripple (XRP) ©

Despite strong selling pressure dominating the cryptocurrency market recently, XRP (Ripple) has successfully defended its support level, building short-term upward momentum and increasing the possibility of breaking the $1.20 mark.

According to FXStreet, an investment media outlet, on July 2 (local time), XRP price is trading above $1.07 on Thursday, showing an upward trend. This rebound comes after testing the $1.03 support level amidst selling pressure over the past few weeks. In particular, news that talks between the U.S. and Iran in Doha made positive progress on issues related to Memoranda of Understanding (MoU) and agreed to continue future discussions, served as a macroeconomic backdrop, prompting investors to show renewed interest in risk assets.

However, institutional investor interest in XRP has somewhat contracted, recording net outflows for two consecutive days. According to SoSoValue data, approximately $3 million flowed out on Tuesday, followed by a moderate outflow of about $2 million on Wednesday. These continuous outflows suggest that risk-off sentiment still dominates the market and could limit XRP's short-term upside.

Retail investor demand and market confidence are also weakening. Open interest in the futures market decreased from $2.31 billion the previous day to $2.29 billion on Thursday. From a broader perspective, this indicates a lack of investor confidence in XRP's short-to-medium-term outlook. In other words, bears (selling resistance) are willing to pay a premium to maintain short positions in XRP, while bulls (buying power) are reluctant to open new long positions.

From a technical analysis perspective, XRP attempted to recover from the $1.03 support level and rose to the $1.07 mark, but it remains below key moving averages, indicating that downward pressure still prevails in the short term. The 50-day Exponential Moving Average (EMA) at $1.19, the 100-period Exponential Moving Average at $1.30, and the 200-day Exponential Moving Average at $1.52 all act as overhead resistance levels, forming an overall bearish structure. Additionally, the Bollinger Bands' middle boundary at $1.11 and the potential trendline breakout zone at $1.22 are also short-term obstacles hindering rebound attempts.

However, auxiliary indicators suggest a moderate strengthening of momentum. The Relative Strength Index (RSI) on the daily chart is still below the neutral baseline of 50 but is rising above 40, and the Moving Average Convergence Divergence (MACD) histogram has slightly turned positive, suggesting a slight improvement in short-term buying pressure. For XRP to achieve a strong upward extension, it must close the daily candle above the upper Bollinger Band at $1.24, in which case it could sequentially target $1.30 and $1.52. Conversely, if the support level breaks, the lower Bollinger Band at $0.99 is expected to become a key support level where new buying interest could emerge.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*